Eric Morris, Managing Director of Google’s Retail practice in Canada, shares critical insights on how Canadian retail is evolving as consumers face a shorter holiday shopping season this year. With less time between Cyber Monday and Christmas, Canadian retailers are navigating a landscape influenced by changing search behaviours, economic pressures, and cutting-edge technology.
Early Holiday Shopping Trends and Challenges
Canadian consumers have adapted their shopping behaviours, beginning research earlier in the holiday season. “There’s more time before Black Friday than after, creating a unique dynamic,” explained Morris.
The trend emphasizes a lengthier research phase for shoppers, allowing retailers more time to engage and influence decisions before a late-season rush. Conversely, the post-Cyber Monday period will likely see a compressed shopping window, with consumers rushing to complete last-minute holiday purchases.
Compounding this dynamic is Donald Trump’s winning the U.S. election, which could distract cross-border shoppers and create an unpredictable retail environment for Canadian retailers with U.S. connections.
Rise of the Undecided Shopper
A notable trend is the rise of the “undecided shopper.” According to Morris, more Canadians are initiating their shopping journeys with broad category searches, such as “running shoes,” rather than specific brands. This reflects a shift towards inspiration-based shopping, with consumers overwhelmed by choices and seeking guidance to make informed decisions. This trend emphasizes the need for retailers to capture attention early in the decision-making process.
Economic concerns remain top of mind for Canadian shoppers. “We’re seeing a more value-conscious shopper,” Morris emphasized, as Canadians continue to face high prices despite inflation rates decreasing from historical highs. Consumers are increasingly driven by the need for the best value and are more likely to search for products tailored to specific needs, such as “gifts for a 10-year-old girl” rather than general items.
Loyalty programs are also key to post-holiday engagement, with 63% of shoppers factoring loyalty incentives into their purchase decisions after the holiday season.
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Mobile Dominance and Seamless Shopping Experiences
Mobile usage continues to play a dominant role in Canadian retail, with 75% of shoppers using their phones in-store for price comparisons, coupon searches, and reviews. Morris noted, “The vast majority of research occurs on mobile, but purchase behaviour can vary.” Many shoppers conduct research on mobile but transition to desktops for purchases or use their phones to enhance in-store buying experiences.
Retailers must create seamless experiences across devices and channels to engage shoppers at every touchpoint. “Connecting digital research to in-store purchases is critical for maximizing sales,” Morris emphasized.
Emerging Players and Competitive Market Dynamics
The Canadian retail landscape has seen significant interest in newer entrants like Decathlon, Temu, and Shein. “They’ve struck the right chord with value-conscious Canadian shoppers,” Morris noted, pointing out their rapid growth due to aggressive marketing and a strong value proposition.
This rise in competitive players adds to the intense pressure retailers face during the holiday season, necessitating innovative engagement strategies and compelling offers.
Self-Gifting and Post-Holiday Opportunities
Self-gifting is a growing trend, with many shoppers making purchases for themselves during holiday sales. January sees a spike in self-care searches, offering retailers a chance to re-engage customers and drive loyalty. “Retailers can capture the rise of ‘self-gifters’ and focus on loyalty programs,” Morris noted, highlighting opportunities beyond Boxing Day sales.
Although data on experience gifting is limited, Morris pointed to efforts by the travel industry, such as “Travel Tuesday,” to capture consumer interest post-Cyber Monday. This reflects a broader effort by sectors to tap into consumer spending habits during the holiday season.
AI Tools Transforming Retail Experiences
Google’s AI-powered tools are driving innovation for consumers and retailers alike. New offerings, such as AI Overviews, help shoppers narrow their choices by summarizing content and providing direct links. Google Lens, which allows users to photograph items and find purchasing options, is another example of enhancing the shopping experience. “This holiday season, we’re focused on making shopping easier and more informative,” said Morris.
Retailers also benefit from AI tools that predict demand, optimize marketing campaigns, and generate creative assets quickly. “AI can save retailers time and help differentiate their offerings,” Morris explained, emphasizing the potential for improved engagement and sales.
With Canadian consumers having more choices than ever, leveraging AI tools is essential for retailers. Morris emphasized, “Retail has never been more competitive. Canadians have an abundance of choice, and the right tools can help retailers differentiate, improve results, and connect with consumers effectively.”
